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Foord International Feeder Fund

Available to invest in via the Prescient Foord International Feeder Fund

For conservative, absolute return-oriented investors in global markets

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INVESTMENT OBJECTIVE

The fund aims to achieve meaningful inflation-beating US$ returns over rolling five-year periods from a conservatively managed portfolio of global investments reflecting Foord's prevailing best investment view.

FOR SOUTH AFRICAN INVESTORS

•    With a moderate risk profile
•    Requiring diversification through investments not available in South Africa
•    Seeking to hedge rand depreciation.

Performance

Returns
Year Fund Return % Benchmark Return % SA Inflation %
2006 (from 01/Mar) 24.9 28.4 5.0
2007 9.2 4.6 8.9
2008 12.6 -19.0 9.5
2009 -6.9 -1.4 6.3
2010 -1.7 -1.6 3.5
2011 19.1 15.9 6.1
2012 16.4 22.3 5.7
2013 42.5 57.7 5.4
2014 8.7 16.3 5.3
2015 36.1 33.3 5.2
2016 -10.5 -3.9 6.8
2017 4.2 10.9 4.7
2018 4.1 6.4 4.5
2019 14.5 25.3 4.0
2020 12.3 22.3 3.1
2021 11.4 32.7 5.9
2022 (to 30/Apr) 2.1 -13.7 1.9

Characteristics
Benchmark

To achieve meaningful US inflation-beating ZAR equivalent returns over a full investment cycle.

Time horizon

Longer than three years.

Inception date

1 March 2006

Minimum investment

R50 000 lump sum or R1 000 per month

Significant restrictions

The portfolio may only invest in cash and one other collective investment scheme.

Income distributions

The Foord International Fund, in which the fund invests, does not distribute its income.

Income characteristics

Marginal to zero income yield as the Foord International Fund is a roll-up fund and does not distribute its income.

Portfolio orientation

Fully invested in the Foord International Fund, sub-fund of Foord SICAV, domiciled in Luxembourg.

Risk of loss

Currency volatility means risk of loss in the short term is high. In general, the risk of loss is lower than that of the average foreign equity fund.

Top 10
Security description Asset class Market Portfolio weight %
FMC Corp Equity US 7.4
ETFS Physical Gold Commodity GB 6.2
US Treasury 1.5% 29/02/2024 Bond US 5.8
SSE PLC Equity GB 5.5
Nestle Equity CH 5.1
Freeport-McMoran Inc Equity US 4.8
CVS Health Corp Equity US 4.8
Wheaton Precious Metals Corp Equity US 4.0
Johnson and Johnson Equity US 3.9
Roche Holding AG Equity CH 3.3
Commentary

Monthly Commentary – April 2022

  • Global developed market equities (-8.3%) slumped on stubbornly high and seemingly accelerating inflation — the spike in the US 10-year yield affected long-duration growth stocks most, with the tech-heavy Nasdaq Composite dropping 13.3%, its worst monthly performance since October 2008
  • Emerging markets (-5.6%) also fell, led by Brazilian equities (-13.7%) which retraced after a market-leading 1Q22 return (+35.9%) driven by the sustained rise in global commodity prices — while Chinese markets (-4.1%) fell on the negative growth effect of its continued zero-covid policy
  • World bond markets (-5.9%) fell as developed market bond yields rose markedly on expectations of aggressive policy tightening — investors in US Treasuries are now pricing in additional interest rate hikes of 2.5%  by the end of 2022
  • Oil (+1.3%) gained marginally but was volatile intramonth with prices driven by uncertainty on supply, strategic reserves and Russian sanctions — soft commodities including wheat (+3.8%), soybean (+5.6%) and corn (+9.3%) rose as weather, the Ukraine war and high fertilizer costs were worries for crop yields
  • Precious metals gold (-2.0%) and silver (-5.5%) declined —metals face competition from fixed interest instruments whose yields have finally risen on speculation for more aggressive US Federal Reserve tightening compared to prior expectations  
  • The US dollar rose materially against all major currencies including the euro (-5.2%), British pound (-4.6%) and Japanese yen (-6.3%) — widening interest rate differentials coupled with the currency’s safe-haven status have concurrently served to strengthen the greenback
  • The fund’s hedges including the sizable short S&P 500 futures position (+8.9%) contributed materially to fund returns in the declining market — the investment global copper miner Freeport-McMoRan (-18.2%) detracted on falling copper prices
  • The rand (-8.1% vs the US dollar) sharply retraced some of its recent gains in line with other emerging market commodity exporters and broad based US dollar strength — the currency is vulnerable to a reversal in the commodity export-driven terms of trade support
Fees

The standard charge rate is a fixed fee of 0.35% plus VAT. A 1.00% annual fee is levied in the Foord International Fund.

WHAT IF YOU HAD INVESTED WITH US IN THE PAST?


Experience the compounding phenomenon of a sustained, long-term investment with Foord.

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Currency
Using rand returns of Foord’s best investment view South African funds. ? In calculating the current value of your hypothetical investment, we have applied the returns of Foord Asset Management’s retirement fund track record from 1 January 1990 to 31 March 2008 (gross of fees) combined with the net returns of the Foord Flexible Fund of Funds from 1 April 2008. Any information provided is not intended nor does it constitute financial, tax, legal, investment, or other type of advice, and the suitability or potential value of any information or particular investment source is not guaranteed. Performance may be affected by changes in the market or economic conditions and legal, regulatory and tax requirements. Distributions may be subject to mandatory withholding taxes. Foord does not provide any guarantee either with respect to the capital or the performance return of investments.
Using US dollar returns of Foord’s best investment view global fund. ? In calculating the current value of your investment, we have applied the long-term returns of the Foord International Trust. These returns are calculated net of fees. Past performance is no guarantee of future performance. Foord Asset Management (Singapore) Pte. Limited disclaims any liability for any loss, liability, or damages (whether direct or consequential) of any nature whatsoever that may be suffered as a result of, or which may be attributable, directly or indirectly to the use of or reliance upon the information provided.
Value Today: R0
Annualised Return: 0%
The annualised return is the effective annual percentage return achieved over the term of the investment. Results for an investment term of less than one year should be treated with caution.

Insights

25 May 2022

How does Foord manage risk in the Foord Flexible Fund?

Dave Foord discusses how diversification is used to manage risk in the Foord Flexible Fund.

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25 May 2022

What hedging strategies are employed in the Foord Flexible Fund especially on currency risk?

Dave Foord discusses what hedging strategies are employed in the Foord Flexible Fund, especially on currency risk.

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